Outsourced CFO Services: Financial Expertise On Demand

Looking for expert financial help without the cost of hiring a full-time, in-house professional? An outsourced chief financial officer partnership could be the ideal arrangement for your startup. Think of fractional, or outsourced, CFOs similar to on-demand professionals in that they’re there when you need them. Fractional CFOs are becoming increasingly popular, especially for startups that have limited budgets and resources and may not be able to bring in a full-time financial professional.

Graphite Financial is a leading provider of fractional CFO services, especially as it pertains to supporting startups. Learn more about the key benefits of outsourcing CFO services and why this arrangement could make sense for your startup.

What Are Outsourced CFO Services and How Do They Work?

As the name implies, an outsourced CFO is someone who works with your startup, but on an external, contract basis. Depending on your startup’s needs, an outsourced CFO might work a certain number of hours per week or month. They may also be contracted to work on a specific project or initiative. Working with a CFO partner can represent a significant cost savings compared to hiring one to work for your startup full-time.

Unlike bookkeepers or controllers who work more in the day-to-day, good outsourced CFOs tend to look at the bigger picture. Such professionals often boast financial expertise and experience in forecasting, strategic planning and analysis.

Why Your Startup Needs Outsourced CFO Services

So what can your startup gain from outsourced CFO services? A lot.

In addition to having expert-level CFO services on-demand, the cost savings compared to hiring a full-time, in-house financial expert can be significant. Graphite’s fractional CFO offerings start at $1,250 per month and can scale up as your startup grows and evolves.

In some cases, startup founders and leaders will take responsibility for financial planning and management. However, as a startup grows and must enter fundraising rounds to raise capital and continue to evolve, founders often require assistance. Working with an outsourced CFO can also free up startup leadership’s time so they can work on growing their operations and leave financial management to financial and accounting experts.

Comprehensive Outsourced CFO Services Offered by Graphite

From strategic planning to financial forecasting and cash flow management, Graphite’s outsourced CFO services can perform a range of services to help support your startup. What’s more is that Graphite’s fractional CFO services are flexible and can grow and evolve as your startup grows and evolves. As accounting and financial experts who specialize in supporting startups, Graphite is well-positioned to help your startup succeed.

Strategic Financial Planning and Analysis

Graphite’s outsourced CFO services help budget, forecast and plan for different scenarios based on your startup’s current revenue as well as any historical data. These data-driven insights help lead to better overall decision-making and help identify potential financial risks before they become major issues.

Cash Flow Management and Optimization

Cash is king for your startup, and cash flow and cash flow management are important to remaining solvent and growing. Graphite can help assess your startup’s cash flow and also enact certain strategies for improving it. Some of these strategies include:

• Incentivizing early payments
• Optimizing inventory management
• Negotiating more favorable terms with suppliers
• Streamlining the overall financial process with automation and AI

Raising Capital and Investor Relations

All startups need to raise capital via fundraising rounds. Grahite’s outsourced CFO services can help with this too. From preparing pitch decks to ensuring data is appropriately showcased in your presentation, Graphite can put your startup in the ideal position to secure more funding. Additionally, after the funding rounds, Graphite can help with reporting and managing investor relationships.

The Outsourced CFO Advantage: Beyond Basic Bookkeeping

Outsourcing your CFO services isn’t just a way to check a box and ensure your finances are handled — it’s a strategic investment in the growth and prosperity of your startup. CFO services are much more big-picture and strategic than transactional bookkeeping services, which can help your startup develop competitive advantages. They also support accurate financial reporting, which is critical for investor trust and regulatory compliance. Furthermore, Graphite’s fractional CFOs only work with a handful of startup clients at a time, meaning they bring diverse perspectives and experiences to the table, but are never too busy to help you when you need it.

How Graphite’s Outsourced CFO Process Delivers Results

Graphite helps support startups from seed to growth stages to scaling. Even though Graphite serves as an external partner, communication and collaboration with your startup are frequent. Regular engagement reduces barriers to entry and helps build trust, creating more value for your startup.

Outsourced CFO Services for Venture-Backed Startups

Graphite’s outsourced CFO services are designed to help startups reach their growth milestones and successfully navigate funding rounds. Outsourced CFOs help startups scale by providing strategic financial oversight, managing cash flow, developing robust financial strategies that align with the startup’s goals and allowing founders to focus on growing their startup while knowing that their finances are being properly taken care of.

Industries That Benefit from Our Outsourced CFO Services

Graphite’s CFO consulting services have helped hundreds of startups scale in industries including SaaS, CPG, Fintech, HealthTech, eComm, AI and more.

One example is Caraway, a non-toxic cookware brand that launched in 2019. Upon its launch, Caraway needed a financial partner who could support the young startup as it launched and scaled its product line. It settled on Graphite, which developed Caraway’s finance and accounting function and provided guidance and support as Caraway grew and evolved.

“Having a partner like Graphite, where you don’t have to think about the back-end accounting and can trust that it’s being done well and correctly, is really important for any early-stage startup,” notes Caraway CEO Jordan Nathan.

Outsourced CFO Services in Action

Graphite doesn’t just talk the talk, our services also walk the walk. We’ve partnered with hundreds of startups to help manage their finances, set a strategy and help them grow. Our partnerships with startups allow founders and leaders to focus on launching product and growing their operations without having to worry about accounting or financial management.

“I feel like I’ve got a resident expert from the SaaS world advising us,” notes Andres Fabris, CEO of SaaS startup Traxo. “Graphite’s team always had a great expert response because this was probably the hundredth time they were dealing with any particular scenario.”

Choosing the Right Outsourced CFO Partner for Your Startup

For more information on the benefits of selecting a CFO partner for your startup and how Graphite can help grow your startup, contact us today. With expertise and experience in various markets, we’ll pair your startup with the right CFO fit to help it achieve success. Whether you need long-term support or project-based CFO consulting, Graphite offers flexible solutions tailored to your startup’s needs. Contact Graphite today for more information and to schedule a free consultation.

FAQs

What distinguishes an outsourced CFO from other financial roles?

An outsourced, or fractional, CFO is an external partner rather than an in-house, full-time professional. Outsourced CFOs perform all the services that a full-time CFO does (i.e., financial planning, budgeting, strategy, etc.), except on a contract basis. Additionally, unlike bookkeeping and controller roles, outsourced CFOs tend to think long-term rather than just work in the day-to-day of things.

How does Graphite’s pricing structure compare to the investment in a full-time CFO?

Startups can save a significant amount of money working with Graphite rather than hiring a full-time CFO to work in-house. For instance, Graphite’s fractional CFO packages start at $1,250 per month and we can create a tailored plan based on your startup’s needs. Get in touch now. 

What is the typical engagement model for startups working with Graphite?

Even though Graphite serves as an external partner, communication and collaboration with your startup are frequent. Regular engagement reduces barriers to entry and helps build trust, creating more value for your startup.

What qualifications and venture experience do Graphite’s outsourced CFOs have?

Graphite helps support startups from seed to exit by providing strategic financial guidance, managing cash flow, developing robust financial strategies that align with the startup’s goals and allowing founders to focus on growing their startup while knowing that their finances are being properly taken care of.

How do outsourced CFO services support startups preparing for Series A or B funding?

From preparing pitch decks to showcasing data in your presentation, Graphite can put your startup in the best position to secure more funding. After funding rounds, Graphite can also help with investor reporting and managing investor relationships.

What specific financial insights can Graphite provide for Fintech, HealthTech, and eCommerce startups?

Graphite has experience servicing startups in all industries, from eComm to HealthTech to SaaS. When you work with Graphite, you can ensure that we’ll pair you with a CFO who has experience in your startup’s industry.

How does Graphite integrate with existing financial teams and systems?

Collaboration and communication are frequent to the point where Graphite becomes a true extension of your startup’s financial systems and team.

What metrics and KPIs do Graphite’s CFOs typically track for venture-backed startups?

Venture-backed startups should track a variety of metrics, such as revenue growth, CAC, LTV, churn rate, burn rate, monthly recurring revenue and more.